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BUSA 4000 Final Exam with correct answers
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BUSA 4000 Final Exam with correct answers
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BUSA 4000 Final Exam with correctanswers
Foreign |Direct |Investment |(FDI) |- |correct |answers✔✔Strategy |in |which |the
|firm |establishes |a |physical |presence |abroad |by |acquiring |productive |assets
|such |as |capital, |technology, |labor, |land, |plant, |and |equipment.
International |Collaborative |Venture |- |correct |answers✔✔A |cross-border
|business |alliance |in |which |partnering |firms |pool |their |resources |and |share
|costs |and |risks |of |a |venture.
joint |venture |- |correct |answers✔✔a |form |of |collaboration |between |two |or |more
|firms |to |create |a |new, |jointly |owned |enterprise
Examples |of |FDI |- |correct |answers✔✔Volkswagen |spent |$1 |billion |to |build |a
|factory |in |Poland |to |manufacture |delivery |vans.
Examples |of |FDI |- |correct |answers✔✔The |British |pharmaceutical |firm
|GlaxoSmithKline |purchased |the |global |Vaccines |division |of |Switzerland's
|Novartis |for |$5.25 |billion.
Examples |of |FDI |- |correct |answers✔✔Denmark's |Lego |Group |spent |more |than
|100 |million |euros |to |build |a |toy |factory |in |China
Examples |of |FDI |- |correct |answers✔✔Japan's |Toshiba |formed |a |joint |venture
|with |the |U.S. |firm |United |Technologies |to |establish |R&D |centers |in |Europe
|and |India |to |support |joint |innovation |in |the |heating |and |air |conditioning
|industry
,Vertical |Integration |- |correct |answers✔✔The |firm |owns, |or |seeks |to |own,
|multiple |stages |of |a |value |chain |for |producing, |selling, |and |delivering |a
|product. |E.g., |Toyota |owns |some |Toyota |car |dealerships |around |the |world.
|Ford |once |owned |steel |mills |that |produced |steel |used |to |make |Ford |cars
Horizontal |Integration |- |correct |answers✔✔Arrangement |whereby |the |firm
|owns, |or |seeks |to |own, |the |activities |involved |in |a |single |state |of |its |value
|chain. |E.g., |Microsoft |acquired |a |Montreal-based |firm |that |makes |software
|used |to |create |movie |animation.
Organizing |Framework |- |correct |answers✔✔Corporate |Governance |-> |Ethics,
|Corporate |Social |Responsibility, |Sustainability
The |Pyramid |of |Ethical |Behavior |- |correct |answers✔✔1. |corporate |social
|responsibility
2. |ethical |behavior
3. |complying |with |laws |and |regulations
Ethics |- |correct |answers✔✔are |moral |principles |and |values |that |govern |the
|behavior |of |people, |firms, |and |governments, |regarding |right |and |wrong
corruption |- |correct |answers✔✔the |practice |of |obtaining |power, |personal |gain,
|or |influence |through |illegitimate |means, |usually |at |others' |expense. |The
|abuse |of |power |to |achieve |illegitimate |personal |gain. |
A |major |or |severe |concern |in |the |global |activities |of |a |large |proportion |of
|MNE's.
Bribery |- |correct |answers✔✔refers |to |offering, |giving, |receiving, |or |soliciting
|anything |of |value |to |influence |the |actions |of |a |government |official |or |a
|corporate |manager. |
, is |common |and |may |take |the |form |of |grease |payments, |small |inducements
|intended |to |expedite |decisions |and |transactions |or |gain |favors. |
The |U.S |Federal |Corrupt |Practices |Act |of |1977
Improper |Ethical |Behavior |May |Result |When: |- |correct |answers✔✔•Top
|management |sets |goals |and |incentives |aimed |at |promoting |good |outcomes
|(e.g., |profits) |that |instead |encourage |bad |behaviors.
•Employees |overlook |unethical |behavior |in |others |because |of |peer |pressure |or
|self-interest.
•Managers |tolerate |lower |ethical |standards |in |value-chain |activities |performed
|by |suppliers |or |third-party |firms.
•Unethical |practices |are |allowed |to |accumulate |in |the |firm |slowly |over |time.
The |Value |of |Ethical |Behavior |- |correct |answers✔✔•Ethical |behavior |is |simply
|the |right |thing |to |do.
•Often |prescribed |within |laws |and |regulations.
•Demanded |by |customers, |governments, |and |the |news |media. |Unethical |firms
|risk |attracting |unwanted |attention.
•Ethical |behavior |is |good |business, |leading |to |enhanced |corporate |image |and
|selling |prospects. |The |firm |with |a |strong |reputation |is |advantaged |in |hiring
|and |motivating |employees, |partnering, |and |dealing |with |foreign |governments.
ethical |standards |- |correct |answers✔✔vary |from |country |to |country
Relativism |- |correct |answers✔✔belief |that |ethical |truths |are |not |absolute |but
|differ |from |group |to |group; |according |to |this |perspective, |a |good |rule |is,
|"When |in |Rome, |do |as |the |Romans |do."
Normativism |- |correct |answers✔✔The |belief |that |ethical |behavioral |standards
|are |universal, |and |firms |and |individuals |should |seek |to |uphold |them |around
|the |world.
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